Ares Capital Corporation is a business development company specializing in acquisition, recapitalization, mezzanine debt, restructurings, rescue financing, and leveraged buyout transactions of middle market companies. It also makes growth capital and general refinancing. It prefers to make investments in companies engaged in the basic and growth manufacturing, business services, consumer products, health care products and services, and information technology service sectors. The fund will also consider investments in industries such as restaurants, retail, oil and gas, and technology sectors. It focuses on investments in Northeast, Mid-Atlantic, Southeast and Southwest regions from its New York office, the Midwest region, from the Chicago office, and the Western region from the Los Angeles office. The fund typically invests between $20 million and $200 million and a maximum of $400 million in companies with an EBITDA between $10 million and $250 million. It makes debt investments between $10 million and $100 million The fund invests through revolvers, first lien loans, warrants, unitranche structures, second lien loans, mezzanine debt, private high yield, junior capital, subordinated debt, and non-control preferred and common equity. The fund also selectively considers third-party-led senior and subordinated debt financings and opportunistically considers the purchase of stressed and discounted debt positions. The fund prefers to be an agent and/or lead the transactions in which it invests. The fund also seeks board representation in its portfolio companies.
Industry, Sector and Symbol
Stock Exchange NASDAQ
Industry Investors, not elsewhere classified
Sub-IndustryAsset Management & Custody Banks
SectorFinance
Current SymbolNASDAQ:ARCC
Previous Symbol
CUSIP04010L10
Phone212-750-7300
Debt
Debt-to-Equity Ratio0.62
Current Ratio2.41
Quick Ratio2.41
Price-To-Earnings
Trailing P/E Ratio12.28
Forward P/E Ratio10.47
P/E Growth3.52
Sales & Book Value
Annual Sales$1.16 billion
Price / Sales6.27
Cash Flow$1.4364 per share
Price / Cash11.88
Book Value$17.16 per share
Price / Book0.99
Profitability
EPS (Most Recent Fiscal Year)$1.39
Net Income$667 million
Net Margins72.13%
Return on Equity9.34%
Return on Assets5.43%
Miscellaneous
EmployeesN/A
Outstanding Shares426,300,000
Market Cap$7.32 billion
OptionableOptionable
Ares Capital (NASDAQ:ARCC) Frequently Asked Questions
What is Ares Capital's stock symbol?
Ares Capital trades on the NASDAQ under the ticker symbol "ARCC."
How often does Ares Capital pay dividends? What is the dividend yield for Ares Capital?
Ares Capital announced a quarterly dividend on Wednesday, October 31st. Investors of record on Friday, December 14th will be paid a dividend of $0.39 per share on Friday, December 28th. This represents a $1.56 dividend on an annualized basis and a yield of 9.11%. The ex-dividend date of this dividend is Thursday, December 13th. View Ares Capital's Dividend History.
How will Ares Capital's stock buyback program work?
Ares Capital announced that its Board of Directors has approved a stock buyback program on Friday, April 7th 2017, which allows the company to repurchase $300,000,000.00 in shares, according to EventVestor. This repurchase authorization allows the company to repurchase shares of its stock through open market purchases. Shares repurchase programs are typically an indication that the company's leadership believes its stock is undervalued.
How were Ares Capital's earnings last quarter?
Ares Capital Co. (NASDAQ:ARCC) released its quarterly earnings data on Wednesday, October, 31st. The investment management company reported $0.45 earnings per share for the quarter, beating analysts' consensus estimates of $0.40 by $0.05. The investment management company had revenue of $342 million for the quarter, compared to the consensus estimate of $320.15 million. Ares Capital had a net margin of 72.13% and a return on equity of 9.34%. The business's revenue for the quarter was up 16.3% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.36 earnings per share. View Ares Capital's Earnings History.
When is Ares Capital's next earnings date?
What price target have analysts set for ARCC?
7 Wall Street analysts have issued 12-month price objectives for Ares Capital's shares. Their forecasts range from $17.00 to $19.00. On average, they expect Ares Capital's stock price to reach $18.1429 in the next twelve months. This suggests a possible upside of 6.0% from the stock's current price. View Analyst Price Targets for Ares Capital.
What is the consensus analysts' recommendation for Ares Capital?
7 Wall Street analysts have issued "buy," "hold," and "sell" ratings for Ares Capital in the last year. There are currently 7 buy ratings for the stock, resulting in a consensus recommendation of "Buy." View Analyst Ratings for Ares Capital.
What are Wall Street analysts saying about Ares Capital stock?
Here are some recent quotes from research analysts about Ares Capital stock:
- 1. According to Zacks Investment Research, "Shares of Ares Capital have outperformed the industry over the past six months. Further, the company has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in three out of the trailing four quarters. Its third-quarter 2018 results benefited from improvement in total investment income and healthy portfolio activity. Investment income growth is expected to continue, driven by the acquisition of American Capital, rise in demand for customized financing and improving economy. Moreover, its robust liquidity position and regulatory changes keep us optimistic. However, mounting expenses and the presence of high debt levels remain major concerns for the company." (11/15/2018)
- 2. National Securities analysts commented, " ARCC posted a very strong $0.45/share of core NII in 3Q18, four cents above our $0.41 estimate. The beat was largely due to capital structuring service fees from non-affiliate investments which we modeled to be $23.8 million for the quarter but came in at $39.0 million.
As a reminder, Ares recognizes the economics of origination fees up-front and this quarter the company had originations totaling $1.95 billion.
ARCC had a record quarter of net realized gains totaling $373.0 million or $0.87/share, with $0.67/share coming solely from the sale of Alcami. The proceeds from the sale were more than double what the company paid for it in the ACAS acquisition.
On the earnings call, management commented that they will not have to pay a special dividend to remain in compliance with the ’40 Act as they still have losses from the old acquisition of Allied Capital to offset the sizable realized gains. However, this will not impact GAAP earnings or NAV. Ares plans to give more detail on spillover income on its 4Q18 earnings call.
ACAS assets at fair value finished the quarter at $728 million, down from $1.47 billion Q/Q. About half of the remaining assets are considered “non-core” and will likely be sold.
While the rotation out of ACAS assets into direct originations has provided a good tailwind for yield and thus earnings, we now expect much of the earnings growth to come from Ares experiencing net portfolio growth and increasing ROE via increases in balance sheet leverage.
We are revising our 2018 core NII/share estimate to $1.68 from $1.64 and our 2019 core NII/share estimate to $1.75 from $1.74 and maintaining our BUY rating and $19 price target." (11/1/2018)
Has Ares Capital been receiving favorable news coverage?
News articles about ARCC stock have trended very positive this week, according to InfoTrie. The research group identifies negative and positive news coverage by monitoring more than six thousand blog and news sources in real-time. The firm ranks coverage of public companies on a scale of -5 to 5, with scores nearest to five being the most favorable. Ares Capital earned a news impact score of 3.1 on InfoTrie's scale. They also assigned headlines about the investment management company a news buzz of 8.0 out of 10, meaning that recent news coverage is very likely to have an effect on the company's share price in the near future.
Are investors shorting Ares Capital?
Ares Capital saw a increase in short interest in the month of October. As of October 15th, there was short interest totalling 5,717,248 shares, an increase of 170.5% from the September 28th total of 2,113,548 shares. Based on an average daily volume of 2,018,584 shares, the days-to-cover ratio is currently 2.8 days. Currently, 1.3% of the shares of the stock are sold short. View Ares Capital's Current Options Chain.
Who are some of Ares Capital's key competitors?
Some companies that are related to Ares Capital include Prospect Capital (PSEC), TPG Specialty Lending (TSLX), Golub Capital BDC (GBDC), Tian Ge Interactive (TGRVF), New Mountain Finance (NMFC), Pennantpark Floating Rate Capital (PFLT), PennantPark Investment (PNNT), Capital Southwest (CSWC), Gladstone Investment (GAIN), Triplepoint Venture Growth BDC (TPVG), Arlington Asset Investment (AI), Oaktree Strategic Income (OCSI), THL Credit (TCRD), Stellus Capital Investment (SCM) and Safeguard Scientifics (SFE).
Who are Ares Capital's key executives?
Ares Capital's management team includes the folowing people:
- Mr. Michael J. Arougheti, Exec. VP & Co-Chairman (Age 46)
- Mr. Bennett Rosenthal, Co-Founder and Co-Chairman (Age 55)
- Mr. Robert Kipp DeVeer III, Director & CEO (Age 45)
- Mr. Robert L. Rosen, Director (Age 72)
- Mr. Mitchell S. Goldstein CPA, CPA, Co-Pres (Age 51)
Who are Ares Capital's major shareholders?
Ares Capital's stock is owned by many different of institutional and retail investors. Top institutional shareholders include Thornburg Investment Management Inc. (3.58%), Vaughan Nelson Investment Management L.P. (1.40%), Confluence Investment Management LLC (1.21%), Muzinich & Co. Inc. (0.87%), Brown Advisory Inc. (0.54%) and Schroder Investment Management Group (0.40%). Company insiders that own Ares Capital stock include Bates Ann Torre, Eric B Siegel, Michael J Arougheti, Penelope F Roll and Steve Bartlett. View Institutional Ownership Trends for Ares Capital.
Which institutional investors are selling Ares Capital stock?
ARCC stock was sold by a variety of institutional investors in the last quarter, including Muzinich & Co. Inc., NWQ Investment Management Company LLC, Freestone Capital Holdings LLC, FMR LLC, CNO Financial Group Inc., Ancora Advisors LLC, New South Capital Management Inc. and Allen Investment Management LLC. View Insider Buying and Selling for Ares Capital.
Which institutional investors are buying Ares Capital stock?
ARCC stock was acquired by a variety of institutional investors in the last quarter, including Vaughan Nelson Investment Management L.P., First Republic Investment Management Inc., BlueMountain Capital Management LLC, Chartwell Investment Partners LLC, LGT Capital Partners LTD., Cliffwater LLC, Rehmann Capital Advisory Group and Frontier Investment Mgmt Co.. Company insiders that have bought Ares Capital stock in the last two years include Bates Ann Torre, Eric B Siegel, Michael J Arougheti, Penelope F Roll and Steve Bartlett. View Insider Buying and Selling for Ares Capital.
How do I buy shares of Ares Capital?
Shares of ARCC can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Vanguard Brokerage Services, TD Ameritrade, E*TRADE, Scottrade, Fidelity and Charles Schwab.
What is Ares Capital's stock price today?
One share of ARCC stock can currently be purchased for approximately $17.12.
How big of a company is Ares Capital?
Ares Capital has a market capitalization of $7.32 billion and generates $1.16 billion in revenue each year. The investment management company earns $667 million in net income (profit) each year or $1.39 on an earnings per share basis.
What is Ares Capital's official website?
How can I contact Ares Capital?
Ares Capital's mailing address is 245 PARK AVENUE 44TH FLOOR, NEW YORK NY, 10167. The investment management company can be reached via phone at 212-750-7300 or via email at [email protected]
MarketBeat Community Rating for Ares Capital (NASDAQ ARCC)
MarketBeat's community ratings are surveys of what our community members think about Ares Capital and other stocks. Vote "Outperform" if you believe ARCC will outperform the S&P 500 over the long term. Vote "Underperform" if you believe ARCC will underperform the S&P 500 over the long term. You may vote once every thirty days.
